Financial performance
|
First half results affected by currency, continued economic slowdown, divestments of non-core activities and investments in restructuring programs for future growth | |
|
Benchmark ordinary net income of EUR 120 mln. Adjusted for currency, the benchmark declined 26% over the first half (compared with a 31% decline over the first quarter of 2003) | |
|
Ordinary free cash flow increased by EUR 32 mln due to strong emphasis on working capital control; net debt reduced by 29% | |
|
Significant cost reduction program targeted for full year of at least EUR 70 mln | |
|
Revenues EUR 1,609 mln; electronic revenues increased to 34% of total continuing revenues. Operating income (EBITA) EUR 230 mln | |
Outlook
|
Outlook full year 2003: Stronger second half, but benchmark ordinary net income at constant currency expected to be significantly below that of last year | |
Near term actions
|
Restructuring programs aimed at quality, efficiency and cost improvements, while maintaining investment levels in new product development | |
|
Plans are underway to leverage solid market positions to gain benefits in second half and thereafter | |
|
Strategic update from the new Chairman Executive Board on October 30, 2003
| |
|
EUR million |
HY 2003 |
HY 2002 |
Change |
Change at constant currencies |
||||||||||||||
| Revenues |
1,609 |
1,917 |
-16% |
-6% |
||||||||||||||
| EBITDA (1) |
283 |
408 |
-31% |
|||||||||||||||
| EBITA2 |
230 |
347 |
-34% |
-24% |
||||||||||||||
| EBITA margin % |
14 |
18 |
||||||||||||||||
| Ordinary net income |
120 |
194 |
-38% |
-26% |
||||||||||||||
| Net income |
-0.115 (2) |
32 |
||||||||||||||||
| EPS (3) |
0.42 |
0.66 |
-36% |
|||||||||||||||
| Ordinary free cash flow |
74 |
42 |
76% |
|||||||||||||||
| Ordinary free cash flow per share 'fully diluted' |
0.23 |
0.15 |
53% |
|||||||||||||||
| Average number of FTEs |
19,701 |
20,132 |
-2% |
|||||||||||||||
1 Benchmark ordinary net income before amortization intangible fixed assets and exceptional items
Before exceptional items
2 After EUR 155 mln impairment charge (before tax)
3 Ordinary EPS before amortization of intangible fixed asset, based on weighted average number of shares 'fully diluted'
|
EUR million |
% change |
EUR million |
% change |
EUR million |
% change |
|||||||||||||||||||||
| HY 2002 |
1,917 |
|
347 |
|
194 |
|||||||||||||||||||||
| Organic |
-64 |
-3 |
-65 |
-19 |
-43 |
-22 |
||||||||||||||||||||
| Acquisitions |
51 |
2 |
5 |
2 |
3 |
1 |
||||||||||||||||||||
|
Divestments |
-95 |
-5 |
-24 |
-7 |
-10 |
-5 |
||||||||||||||||||||
| Currency |
-200 |
-10 |
-33 |
-10 |
-24 |
-12 |
||||||||||||||||||||
| HY 2003 |
1,609 |
-16 |
230 |
-34 |
120 |
-38 |
||||||||||||||||||||
Rob Pieterse, Chairman of the Executive Board of Wolters Kluwer, commented:
"We have indicated during the year that 2003 would be challenging. Current market circumstances reinforce this with trading conditions difficult and currency working against us. Nevertheless, much has been achieved - financial controls and reporting have been tightened, net debt reduced, cost controls and the restructuring program accelerated, all of which will produce benefits from the second half onwards.
Looking further ahead, the new executive team will seek to capitalize on the valuable market positions that Wolters Kluwer has built and therefore looks forward to the future with confidence."